WINNIPEG – The ICE Futures canola market traded higher on Wednesday to go with a mixed tone in vegetable oils.
The Chicago soy complex was mostly lower on Wednesday while European rapeseed was higher and Malaysian palm oil was lower. Meanwhile, crude oil prices were on the rise as OPEC+ gets set to announce reduced output this week.
High temperatures across the Prairies were expected to take a turn on Wednesday, failing to exceed the 20-degree Celsius mark. Sun and cloud were forecast for the region today with a chance of showers in parts of Alberta.
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The Canadian dollar was losing some of Tuesday’s gains, dropping three-tenths of a U.S. cent and providing support for canola prices.
About 37,689 canola contracts were traded on Wednesday, which compares with Tuesday when 50,767 contracts changed hands. Spreading accounted for 31,614 of the contracts traded.
SOYBEAN futures on the Chicago Board of Trade declined in the double-digits on Wednesday as the U.S. harvest continues to advance.
While end of year U.S. soybean stocks are still projected to be tight, the larger-than-expected 274 million bushel carryout estimated by the United States Department of Agriculture (USDA) on Sept. 30 is still putting pressure on prices.
Brazil’s planting progress was at 4.7 per cent as of Oct. 1, higher than 3.9 per cent at that point last year. Argentina’s soybean growers have sold 69 per cent of their 2021-22 crop, slightly ahead of the previous year.
CORN futures were unsure of which direction to take on Wednesday.
The U.S. exported 2.3 million tonnes of corn in September, nearly four per cent above last year but 25 per cent below the five-year average.
September purchases from China increased by 86 per cent from last year but exports to China declined 26 per cent month-to-month.
Despite mostly favourable weather conditions conducive towards the harvest, some areas of the northern U.S. corn belt are being threatened by freezing temperatures.
WHEAT futures also struck a mixed tone on each side of unchanged.
Despite scattered rains falling over wheat growing areas in the U.S. Southern Plains, there is little precipitation forecast over the next week.
As of Oct. 3, Ukrainian farmers have sown 1.1 million hectares of wheat compared to 3.1 million last year.
